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Does one size fit all? The impact of cognitive skills on economic growth

By Nadir Altinok and Abdurrahman Aydemir

Abstract

International audienceThis paper tests for heterogeneous effects of cognitive skills on economic growth across countries. Using a new extended dataset on cognitive skills and controlling for potential endogeneity, we find that the magnitude of the effect is about 60 per cent higher for low-income countries compared to high-income countries, and it more than doubles when low TFP countries are compared to high TFP countries. There are also marked differences across ge- ographic regions. Using data on the share of the population with advanced and minimum skill levels, our results also indicate that high-income countries should focus on increasing the number of high skilled human capital, while countries from Sub-Saharan Africa would benefit more by investing in the development of basic skills

Topics: Education, Development, Africa, Cognitive skills, Growth, Heterogeneity, [SHS.EDU]Humanities and Social Sciences/Education, [SHS.ECO]Humanities and Social Sciences/Economics and Finance
Publisher: 'Elsevier BV'
Year: 2017
DOI identifier: 10.1016/j.jmacro.2017.06.007
OAI identifier: oai:HAL:halshs-01671740v1
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